CHARTER HIRE OF DRILLING RIG - Oil India Limited

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Page 1 of 19 OIL INDIA LIMITED (A Govt. of India Enterprise) CONTRACTS DEPARTMENT P.O. Duliajan-786 602(Assam) INVITATION FOR EXPRESSION OF INTEREST (EOI) EOI NO.: OIL/DRLG/GLOBAL/EOI/02/2017 FOR CHARTER HIRE OF DRILLING RIG Sub: Expression of Interest (EOI) for Charter Hire of One No. 2000HP (Minimum) Capacity Land Drilling Rig Package including Top Drive System, 3 Nos. of mud pumps (with minimum 7500 psi w.p. delivery lines & manifold) and Effluent Treatment Plant (ETP) with Crew and Services for exploratory Drilling in Mizoram, India (NELP-VI Block: MZ-ONN-2004/1) for a period of two year with a provision for further extension by one more year or part thereof. 1.0 PREAMBLE: OIL INDIA LIMITED (OIL), a Government of India Enterprise under the Ministry of Petroleum and Natural Gas, is a premier up-stream Oil Company engaged in the business of Exploration, Production & Transportation of Crude Oil & Natural Gas as well as production of LPG, having its Headquarter at Duliajan, Assam in India. Its operations are largely based in the north-eastern parts of India particularly in Mizoram, Assam and Arunachal Pradesh, but have also extended its activities in different parts of India and abroad. In connection with its ongoing exploration activities in the State of Mizoram, OIL’s Contract’s Department invites Expression of Interests (EOIs) from reputed and established E&P Service Providers/Vendors/Contractors meeting the pre-qualification criteria as mentioned below for empanelment/short listing and issue of tender document for Charter Hire of a 2000HP minimum capacity land Drilling Rig Package including suitable Top Drive system, 3 Nos. of Mud pumps& Effluent Treatment Plant with requisite manpower to carry out drilling of exploratory wells in NELP-VI block: MZ-ONN- 2004/1. The period of contract would be initially for a period of two year, with a provision for further extension by one more year or part thereof on same rates, terms and conditions at the option of Company. 2.0 PROJECT INFORMATION: 2.1 As per committed Minimum Work Programme (MWP) for the NELP-VI Block (MZ- ONN-2004/1) Oil India Ltd. (OIL), being the Operator has to drill exploratory wells within stipulated time frame. So far two well has already been drilled in the block. However, for completion of remaining wells, Company has planned to deploy one 2000 HP (minimum) capacity Land Drilling Rig Package on chartered hire basis initially for a period of two(2) year with provision for further extension by one more year or part thereof on same rates, terms & conditions at the option of Company. 2.2 Mizoram has the most variegated hilly terrain in the eastern part of India with 21 hill ranges of different altitudes (maximum altitude of around 1800 m and in general 900 m to 1200 m) with succession of long valleys running mostly from North to South covering the entire state. The hills are very steep and rugged with intervening

Transcript of CHARTER HIRE OF DRILLING RIG - Oil India Limited

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OIL INDIA LIMITED (A Govt. of India Enterprise) CONTRACTS DEPARTMENT

P.O. Duliajan-786 602(Assam)

INVITATION FOR EXPRESSION OF INTEREST (EOI) EOI NO.: OIL/DRLG/GLOBAL/EOI/02/2017

FOR

CHARTER HIRE OF DRILLING RIG

Sub: Expression of Interest (EOI) for Charter Hire of One No. 2000HP

(Minimum) Capacity Land Drilling Rig Package including Top Drive System, 3 Nos. of mud pumps (with minimum 7500 psi w.p. delivery

lines & manifold) and Effluent Treatment Plant (ETP) with Crew and Services for exploratory Drilling in Mizoram, India (NELP-VI Block: MZ-ONN-2004/1) for a period of two year with a provision for further

extension by one more year or part thereof.

1.0 PREAMBLE:

OIL INDIA LIMITED (OIL), a Government of India Enterprise under the Ministry of Petroleum and Natural Gas, is a premier up-stream Oil Company engaged in the business of Exploration, Production & Transportation of Crude Oil & Natural Gas as well as production of LPG, having its Headquarter at Duliajan, Assam in India. Its operations are largely based in the north-eastern parts of India particularly in Mizoram, Assam and Arunachal Pradesh, but have also extended its activities in different parts of India and abroad. In connection with its ongoing exploration activities in the State of Mizoram, OIL’s Contract’s Department invites Expression of Interests (EOIs) from reputed and established E&P Service Providers/Vendors/Contractors meeting the pre-qualification criteria as mentioned below for empanelment/short listing and issue of tender document for Charter Hire of a 2000HP minimum capacity land Drilling Rig Package including suitable Top Drive system, 3 Nos. of Mud pumps& Effluent Treatment Plant with requisite manpower to carry out drilling of exploratory wells in NELP-VI block: MZ-ONN-2004/1. The period of contract would be initially for a period of two year, with a provision for further extension by one more year or part thereof on same rates, terms and conditions at the option of Company.

2.0 PROJECT INFORMATION: 2.1 As per committed Minimum Work Programme (MWP) for the NELP-VI Block (MZ-

ONN-2004/1) Oil India Ltd. (OIL), being the Operator has to drill exploratory wells within stipulated time frame. So far two well has already been drilled in the block. However, for completion of remaining wells, Company has planned to deploy one 2000 HP (minimum) capacity Land Drilling Rig Package on chartered hire basis initially for a period of two(2) year with provision for further extension by one more year or part thereof on same rates, terms & conditions at the option of Company.

2.2 Mizoram has the most variegated hilly terrain in the eastern part of India with 21

hill ranges of different altitudes (maximum altitude of around 1800 m and in general 900 m to 1200 m) with succession of long valleys running mostly from North to South covering the entire state. The hills are very steep and rugged with intervening

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deep gorges. Two major roads namely NH-54 and State Highway funded by World Bank run almost parallel to each other in North–Southern direction through the centre of the state as well as OIL’s NELP block. Both the roads emanate from Aizawl and converge at Lunglei, the second largest town in Mizoram after Aizawl. These two highways will serve as the major feeders for any drilling locations within the NELP block. The roads are in hilly terrain full of sharp curves with steep gradient. The other connecting roads are narrow having sharp horizontal curves with steep gradient in many places.

2.3 Like all other states in North east India, Mizoram also experiences heavy rain during Monsoon which sets early i.e. from May onward. The average annual rainfall is 250 cm. Pre Monsoon showers are also frequent. During the period of monsoon there is frequent heavy rains resulting landslides with temporarily disruption of the road communication system. The summer is hot and humid and maximum temperature ranges from 30 to 34 degree centigrade during April to June. The winter is from November to January when the temperature is 12 to 25 degree centigrade.

3.0 GEOLOGY OF THE AREA: 3.1 Assam - Arakan region, Mizoram, Manipur and Tripura have drawn the attention of

exploration geologists ever since the discovery of Digboi and Makum oil fields of Upper Assam around 1890. The Badarpur oil field in Cachar district of Assam, presently abandoned, was discovered in 1901. This discovery followed a spate of other discoveries in Assam since Sixties of the last Century. Gas occurrence in Tripura is very relevant to the exploration of the region. Commercial gas in this state was discovered during the late seventies of previous century within the Surma sequence of Miocene age. Several other gas fields have also been found since then.

3.2 Cachar–Tripura-Mizoram fold belt constitutes a distinct part of Assam-Arakan

tectonic system. Myanmar’s Shan Plateau and the Ophiolite complex extend to the east of it. The Bangladesh flood plains are to the west. The Naga Schuppen belt of Assam forms the northern extreme and Chittagong hill track (Bangladesh) lies to the south of it.

3.3 The area of operation is a part of Tripura–Cachar–Mizoram fold belt of Assam

Arakhan Basin. The Mizoram fold belt is composed of tight linear folds with their axes almost in north-south direction. The intensity of folding increases from west to east where the rocks of Indian plate sub-ducted below the Burmese plate. The anticlines are long, narrow and tight, whereas the synclines are broad and gentle. As per the geological section of the area of operation, the area has Tipam formation exposed in the central part and Bokabil formation is exposed in the eastern and western part. The Bhuban formation is divided in three formations as Lower, Middle and Upper Bhuban formations. Lower Bhuban formation is mainly alternations of

sandstones and shale. The Middle Bhuban consists of mainly shale with subordinate sandstones. The Upper Bhuban consists of alternations of sandstones and shales.

4.0 LOCATION OF THE AREA:

The block: MZ-ONN-2004/1 is situated in the Mizoram state in India and covers an area of 3213 sq. km. Aizawl is the Capital town of Mizoram and is connected to the other places by motorable roads and highways. The nearest railhead is at Bhairabi close to the border with Cachar district of Assam. Aizawl is linked by air to the rest of India, the nearest international airport being located at Kolkata in West Bengal. The proposed area lies in between the following broad coordinates:

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COORDINATES OF BLOCK MZ-ONN-2004/1:

Points Latitude (N) Longitude (E)

Deg. Min. Sec. Deg. Min. Sec.

A 23 40 00 92 32 54.85

B 23 00 00 92 35 58

C 23 00 00 93 00 00

D 23 40 00 93 00 00

A 23 40 00 92 32 54.85

5.0 BRIEF SCOPE OF WORK:

5.1 To drill onshore wells through chartered hire of one (1) No. of Land Drilling Rig Package of capacity 2000HP (Minimum) including Top drive System, 3 (three)

nos. of mud pumps with minimum 7500 psi w.p. delivery lines & manifold and suitable capacity Effluent Treatment Plant alongwith all associated personnel,

equipment/tools & services for a period of two (2)years. The wells will be straight vertical holes with formation pressure above hydrostatic. Well depths are

expected to be in the range of 3500-5500 meters. However, depths of the wells may increase or decrease at the option of Company (OIL) within the rated

capacity of the rig. 5.2 The input horsepower rating of the Draw-works of identified/offered rig should be

minimum 2000 HP. Further the rig offered should be Diesel-Electric (AC-SCR or AC-VFD) having minimum 1000 kps static hook load capacity self-elevating type mast and sub-structure (conforming to API specification 4F). The Rig should be installed with a suitable Top Drive System, 3 nos. of suitable mud pumps and the Rig Package should also include a proper Effluent Treatment Plant.

Note: The roads leading to the drilling locations in Mizoram are in hilly terrain with sharp turnings and steep gradients where the maximum single load with carrier/trailer should not exceed 35 MT for transportation.

6.0 PRE-QUALIFICATION CRITERIA:

6.1 The Vendor/Contractor/Service Provider must fulfil the following minimum pre-

qualifying criteria to be eligible for empanelment/short-listing and issue of tender document by Company for Charter Hire of Drilling Rig Package.

(i) The Vendor/Contractor/Service Provider shall be in possession of the Drilling

Rig Package (including suitable Top Drive system, 3 nos. of mud pumps& Effluent Treatment Plant) of minimum 2000HP capacity, either owned or

leased. In case the Vendor/Contractor/Service Provider/Bidder is not in possession of the Rig Package at the time of submission of EOI, they may offer a Rig for which they have an agreement for lease/purchase.

(ii) The Vendor/Contractor/Service Provider must possess at least one (1) year continuous experience of providing Drilling Services to E&P companies with minimum of 1400 HP capacity Drilling Rig on chartered hire basis and should have successfully drilled at least five (5) numbers of wells with drilling rig(Minimum 1400 HP capacity), out of which at least one well should be of minimum 4000 m depth and one well in fold-belt area during the last seven(7) years upto the date of publication of EOI.

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(iii) In case the Vendor/Contractor/Service Provider proposes a vintage Rig in their EOI, then the Rig Package should not be of more than ten (10) years old and must have a minimum Residual Life of seven (7) years.

(iv) The Vendor/Contractor/Service Provider should categorically confirm that

they can complete mobilisation of their offered Rig Package with requisite manpower at site in Mizoram within short notice (Letter of Award) of one hundred twenty (120)days from the date of receipt of LOA.

(v) The Vendor/Contractor/Service Provider who were banned/put on

holiday list in last 7(seven) years by any E&P Companies operated in India, reckoned from the date of publication of EOI and could not complete the mobilization obligation within the stipulated period as entered into the Contracts will not be qualified for further processing against this EOI.

(vi) The Vendor/Contractor/Service Provider shall have an Annual financial turnover of minimum INR 62.80 Crore (or equivalent USD 9724372.87) during any of the preceding 03 (three) financial/accounting years reckoned from the original EOI publication date.

(vii) "Net worth of Vendor/Contractor/Service Provider must be positive for

preceding financial/accounting year. (viii) Considering the time required for preparation of Financial Statements, if the

last date of preceding financial / accounting year falls within the preceding six months reckoned from the original bid closing date and the Financial Statements of the preceding financial / accounting year are not available with the bidder, then the financial turnover of the previous three financial/accounting years excluding the preceding financial / accounting year will be considered. In such cases, the Net worth of the previous financial / accounting year excluding the preceding financial / accounting year will be considered. However, the bidder has to submit an affidavit/undertaking certifying that ‘the balance sheet/Financial Statements for the financial year ................ has actually not been audited so far’. NOTE:

(a) For proof of Annual Turnover & Net worth any one of the following documents must be submitted along with the EOI:

i) A certificate issued by a practicing Chartered /Cost Accountant (with Membership Number and Firm Registration Number), certifying the Annual turnover & Net worth as per format prescribed in ANNEXURE-III

OR

ii) Audited Balance Sheet along with Profit & Loss account. In case of foreign Vendor/Contractor/Service Provider, self-attested/digitally signed printed published accounts are also acceptable. In case the Audited Balance Sheet and Profit Loss Account submitted

along with the EOI are in currencies other than INR or US$, the Vendors/Contractors/Service Providers shall have to convert the figures in equivalent INR or US$ considering the prevailing conversion rate on the date on which the Audited Balance Sheet and Profit & Loss Account is signed. A CA Certificate is to be submitted by the bidder regarding converted figures in equivalent INR or US$.

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6.2 In case the Vendor/Contractor/ Service Provider is a Consortium of Companies, the Leader of the Consortium should satisfy the minimum requirements as per para 6.1 (i) to (v) above. However, at least any one of the consortium members individually shall have to meet the Annual financial turnover criteria mentioned in para 6.1 (vi) to (viii) and the other members of Consortium should meet minimum 25% turnover each as per para 6.1(vi) to (viii).

(a) EOI(s) from Consortium shall be submitted with a Memorandum of Understanding

(MOU) between the consortium members duly signed by the authorized Executives of the consortium members clearly defining the role/scope of work of each partner/member, binding the members jointly and severally to the responsibility for discharging all obligations under the contract and identifying the Leader of Consortium. Unconditional acceptance of full responsibility for brief ‘Scope of Work’ by the Leader of the Consortium shall be submitted with the EOI.

6.3 In case the Vendor/Contractor/ Service Provider is an Indian Company/Indian joint

venture Company, then the participating vendor should meet the criteria laid down in para 6.1 (i) through (vii) above. Also, the Indian Company/Indian Joint Venture Company who does not meet the minimum pre-qualifying criteria as per clause No. 6.1(i) to (v), may also submit the EOI on the strength of Technical Collaborator/Joint Venture Partner. However, the Primary Vendor/Contractor/ Service Provider shall have to meet the financial criteria mentioned in Clause No. 6.1. (vi) to (vii), above.

(a) The Technical Collaborator/Joint Venture Partner at its own shall meet the

experience criteria as in clause No. 6.1(i) to (v), above. The experience of the Technical Collaborator /Joint Venture with other firm(s) will not be qualified.

(b) Indian Vendor/Contractor/Service Provider quoting based on technical collaboration/ joint venture, shall submit a Memorandum of Understanding (MOU)/Agreement with their technical collaborator/ joint venture partner clearly indicating their roles under the scope of work which shall be addressed to OIL and shall remain valid and binding.

6.4 Any party who is extending support by way of entering into technical

collaboration/joint venture with another party shall not be allowed to submit an independent EOI and such EOIs shall be rejected straightway. Further, all EOIs from parties with technical support from the same principal shall also be rejected.

6.5 EOIs from Vendor/Contractor/Service Provider who do not meet the pre-qualifying

criteria as stipulated in para 6.1(i) to (vii), above of their own can also be considered, provided they are the 100% Subsidiary Company of a Parent Company which meets

aforesaid minimum criteria. In such cases, as the Subsidiary Company is dependent on the experience of Parent Company, the participating Vendor (100% subsidiary Company) should submit an agreement/Corporate Guarantee as per Annexure-IV. However, the parent/ subsidiary company of the Vendor/Contractor/Service Provider should on its own meet the experience criteria as stipulated in the Pre-Qualifying Criteria and should not rely for meeting the experience criteria on its sister subsidiary / co-subsidiary company or through any other arrangement like

Technical Collaboration agreement.

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6.6 DOCUMENTS / INFORMATION:

The Vendor/Contractor/Service Provider must furnish the following documents as part of their EOI in support of fulfilling all the above pre-qualifying criteria, failing which the EOI shall be rejected.

(a) Identification of Rig Package: Vendor must categorically declare

whether the Rig Package identified by them is already in their possession

(owned/ leased) or against proposed purchase/lease.

(b) Technical Specifications: Brief Technical Specifications and critical parameters of the identified/offered Rig Package.

(c) Vintage & Residual Life of Rig Package: Categorical declaration by the

Vendor about Vintage & Residual Life, if applicable, of the proposed/offered Rig Package as on EOI publication date.

(d) Experience of Vendor: Pursuant to sub-para 6.1 (ii) & 6.1 (iii) above,

Vendor must submit a statement in a tabular form as per Annexure-I

indicating the details of jobs completed.

(e) Details of current work in hand and other contractual commitments of the Vendor are also to be submitted in tabular form as per Annexure-II.

(f) A letter with categorical confirmation that the Vendor/Contractor/Service

Provider has the key personnel meeting the requisite qualification & experience for job execution in the event of an Agreement as indicated

vide Annexure-V. The vendor has to submit the Annexure-V and also an Undertaking to deploy the requisite Personnel meeting OIL’s

requirement to be submitted along with the EOI.

(g) Mobilization: Vendor should confirm to mobilize their resources within

one hundred twenty (120)days from issue of Letter of Award (LOA) by Company.

(h) Financial Turnover of Vendor: Statement to be furnished as per

Annexure-III for the last three (3) accounting years, preceding the date of submission of EOI.

(i) MOU/Agreement/Corporate Guarantee: Valid document, must be

furnished in respect of formation of Consortium/Joint

Venture/Collaboration or Corporate Guarantee for 100% subsidiary, as may be applicable, pursuant to para 6.2 to 6.5 above.

GENERAL NOTES:

(i) All documents submitted along with the EOI must be self-certified by the Vendor/Contractor/Service Provider and should be clear & legible. OIL

INDIA LIMITED reserves the right to check physically the original documents.

(ii) The EOI is liable to be ignored in case of submission of any misleading / false representation by the Vendor/Contractor/Service Provider.

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(iii) OIL INDIA LIMITED reserves the right to ignore any or all EOIs and also to curtail/enhance the scope of work stated above, if required, without

assigning any reason thereof.

7.0 Based on the responses received against this invitation, OIL intends to short-list the Vendors/Firms who meet the minimum qualifying criteria given in Para

6.0 above. Bids shall then be invited from those short-listed Vendors/Firms through formal Tendering specifying detailed BEC/BRC for award of contract.

8.0 SUBMISSION OF EOI:

8.1 Interested Parties/Vendors/Contractors/Service Providers having relevant

experience and expertise (details are available at OIL’s website-www.oil-india.com) are invited to submit their EOI(s) at our e-mail id: eoi-

[email protected] within 4th October’2017, followed by hard copies of the same in sealed envelopes super-scribing “EOI for Charter Hire of 2000HP

Drilling Rig Package for NELP Block in Mizoram” through courier/post following

address:

GENERAL MANAGER (CONTRACTS)

OIL INDIA LIMITED

CONTRACTS DEPARTMENT DULIAJAN-786602, ASSAM, INDIA

Phone: 91-374-2800548, Fax: 91-074-2803549, Email: [email protected], Website: www.oil-india.com

Vendor/Contractor/ Service Provider may also upload their offer in their FTP

server/File sharing website (portal) and the link(s) may be provided to us at our e-mail within the above specified period.

9.0 Oil India Limited reserves the right to (a) either accept or reject any/all EOIs; (b)

cancel the process, without assigning any reasons whatsoever.

&&&&&&&&&&&&&

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ANNEXURE-I

Experience of Vendor

(Details of jobs completed during last five years upto EOI submission)

Sl. No.

Contract No.

Name of

client

Place of operation

HP of

Rig

No. of Wells drilled &

completed Commencement date of contract

Completion date of

contract Depth

of Well

Nature of well

(Add lines as required)

&&&&&&&&&&&

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ANNEXURE-II

Details of current work in hand

Sl. No.

Contract No.

Name of

client

Place of operation

HP of

Rig

No. of Wells drilled

Duration of Contract

Commence-ment date of

contract Depth

of Well

Nature of well

(Add lines as required)

&&&&&&&&&&&

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ANNEXURE – III

CERTIFICATE OF ANNUAL TURNOVER & NET WORTH

TO BE ISSUED BY PRACTISING CHARTERED ACCOUNTANTS’ FIRM ON THEIR LETTER HEAD

TO WHOM IT MAY CONCERN This is to certify that the following financial positions extracted from the audited financial statements of M/s.......................................... (Name of the Bidder/

Vendors/Contractors/Service Providers) for the last three (3) completed accounting

years upto ……………..(as the case may be) are correct.

YEAR TURN OVER In INR (Rs.) Crores /

US $ Million)

NET WORTH In INR (Rs.) Crores /

US $ Million)

*Rate of Conversion (if used any): USD 1.00 = INR.......... Place: Date: Seal: Membership No. : Registration Code: Signature

&&&&&&&&&&&

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ANNEXURE-IV

PARENT COMPANY GUARANTEE

(TO BE MADE ON STAMP PAPER OF REQUISITE VALUE AND NOTORIZED)

DEED OF GUARANTEE

THIS DEED OF GUARANTEE executed at……….. this……….. day of 2017 by M/s………………………….. (Mention complete name) a company duly organized and existing under the laws of …………………………… (insert jurisdiction/country), having in Registered Office at……………………… herein after called “the Guarantor” which expression shall, unless excluded by the repugnant to the subject or context thereof, be deemed to include its successors and permitted assigns.

WHEREAS; M/s Oil India Limited, a company duly registered under the companies Act 1956, having its Registered Office at Duliajan, Dist: Dibrugarh, Assam-786602, India and having Corporate Office at Plot No. 19, Sector-16A, Noida, UP hereinafter called “Company” which expression shall unless excluded by or repugnant to the context thereof, be deemed to include its successor and assigns, invited Expression of Interest on........ vide OIL/______/GLOBAL/EOI/____/2017 for Charter Hire of Drilling Rig Package. M/s…………………… (Mention complete name), a company organized and existing under the laws of……… (Insert jurisdiction/country), having its registered office at………………………… (give complete address) hereinafter called “the Contractor” which expression shall, unless executed by or repugnant to the subject or context thereof, be deemed to include its successor and permitted assigns, *a wholly owned subsidiary of the Guarantor, have, in response to the above mentioned tender invited by the Company, submitted their bid no…….. to the Company with one of the condition that the Contractor shall arrange a guarantee from its parent company guaranteeing due and satisfactory performance of the work covered under the said tender including any change herein as may be deemed appropriate by the Company at any stage. The Guarantor represents that they have gone through and understood the requirement of the above said tender and are capable of and committed to provide technical, financial and such other supports as may be required by the Contractor for successful execution of the same. The Contractor and the Guarantor have entered into an agreement dated……… as per which the Guarantor shall be provided technical, financial and such other supports as may be necessary for performance of the work relating to the said tender.

Accordingly, at the request of the Contractor and in consideration of and as a requirement for the Company to enter into agreement(s) with the Contractor, the Guarantor hereby agrees to give this guarantee and undertakes as follows: The Guarantor (Parent Company) unconditionally agrees that in case of non-performance by the Contractor of any of its obligations in any respect, the Guarantor shall, immediately on receipt of notice of demand by the Company, take-up the job without any demur or obligation, in continuation and without loss of time and without any cost to the Company and duly perform the obligations of the Contractor to the satisfaction of the Company. In case the guarantor also fails to discharge its obligations herein and complete the job satisfactorily, Company shall have absolute rights for effecting the execution of the job from any other person at the risks and costs of the Guarantor.

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The Guarantor also undertakes to make good any loss that may be caused to the Company for non-performance or unsatisfactorily performance by the Guarantor or the Contractor of any of their obligations.

1. The Guarantor agrees that the Guarantee herein contain shall remain valid and enforceable till the satisfactory execution and completion of the work (including discharge of the warranty obligations) awarded to the Contractor.

2. The Guarantor shall be jointly with the Contractor as also severally responsible for

satisfactory performance of the contract entered between the Contractor and the Company.

3. The liability of the Guarantor, under this Guarantee, is limited to the value of the

contract entered between the Contractor and the Company i.e. upto and in no event shall be Guarantor’s liability hereunder, either in its capacity of Guarantor or as a

Contractor should it perform the contract in the event of the Contractor’s non-performance as per point 1 hereinabove, exceed that of the Contractor under the mutually agreed contract awarded to the Contractor. This will, however, be in addition to the forfeiture of the Performances Guarantees furnished by the Contractor.

4. The Guarantor represents that the Guarantee has been issued after due observance

of the appropriate laws in force in India. The Guarantor hereby undertakes that the Guarantor shall obtain and maintain in full force and effect all the government and other approvals and consents that are necessary and do all other acts and things necessary or desirable in connection therewith or for the due performance of the Guarantor’s obligations hereunder.

5. The Guarantor also agrees that this Guarantee shall be governed and construed in

accordance with the laws in force in India and subject to the exclusive jurisdiction of the courts of………, India.

6. The Guarantor hereby declares and represents that this Guarantee has been given

without any undue influence or coercion from any person and that the Guarantor has fully understood the implications of the same.

7. The Guarantor represents and confirms that the guarantor has the legal capacity,

power and authority to issue this Guarantee and that giving of this Guarantee and the performance and observations of the obligations hereunder do not contravene any existing law or any judgment. For & on behalf on (Parent Company)

M/s_________________________

Witness:

1.

2.

*strikeout, if not applicable

&&&&&&&&&&&

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ANNEXURE-V

LIST OF PERSONNEL TO BE DEPLOYED:

i) The vendor/Service provider/Contractor will have to deploy adequate

manpower to carry out the required operations. The deployment pattern will

be as per the Contractor’s discretion for all the required services except for

the rig operations during drilling & completion phases for which the

deployment pattern has to be as per the following norm with the indicated

key personnel:

Position

Total

per

day

Daytime

shift

Nighttime

Shift Off

Allocated

per Rig

Rig Manager / Rig Superintendent

1 1 1 2

Tool pusher 1 1 - 1 2

Tour pusher 1 - 1 1 2

Driller 2 1 1 2 4

Assistant Driller 2 1 1 2 4

Derrick men / Top

man 4 2 2 4 8

Roughneck /

Floorman 8 4 4 8 16

Chief Mechanic 1 1 1 2

Chief Electrician 1 1 1 2

Mechanic 2 1 1 2 4

Electrician 2 1 1 2 4

Welder 1 1 1 2

ETP Supervisor 2 1 1 2 4

Lab Assistant for ETP 2 1 1 2 4

HSE Officer 1 1 1 2

Medic/Doctor 1 1 1 2

Crane Operator 1 1 1 2

Telephone Attendant / Radio Operator

2 1 1 2 4

Roustabout / UnskilledLabor

8 4 4 8 16

Catering Personnel As required

TOTAL* 43 43 86

* Excluding catering personnel

ii) The Rig Manager / Rig Superintendent have to be present at site all the times

and should report to & liaison with Company’s representative for daily

operations meeting & carrying out day-to-day operation smoothly.

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iii) KEY PERSONNEL: The qualification and experience of the key personnel are

to be as under:

a. RIG MANAGER/RIG SUPERINTENDENT

i) Qualification: Graduate in Engineering / Science or three years Diploma in Engineering.

ii) Experience:

a. Should have work experience in deep drilling oil / gas wells, for minimum 10 years, of which at least 5 years should be in a senior

management level b. Should be conversant with working in diesel electrical rigs/supplied

rig.

c. Should be conversant with mud chemicals & maintenance of mud property.

d. Should have completed at least one gas well of minimum 4000m

depth e. Should have completed one well in thrust belt area.

iii) Certification / License / Health:

a. Must possess valid well control certificate (IWCF Level-4 i.e.

Supervisor Level) and should be conversant with well control methods to take independent decisions in case of well emergencies.

b. Should be of sound health to work in adverse weather condition in drilling well.

b. TOOL PUSHER:

i) Qualification: Graduate in Engineering / Science or three years Diploma in Engineering.

ii) Experience:

a. Should have work experience in deep drilling oil / gas wells, for minimum 10 years, of which at least one year as tool pusher in exploratory & development wells.

b. Should be conversant with working in diesel electrical rigs/supplied rig.

c. Should be conversant with mud chemicals & maintenance of mud

property. d. Should have completed at least one gas well of minimum 4000m

depth e. Should have completed one well in thrust belt area.

iii) Certification / License / Health: a. Must possess valid well control certificate (IWCF Level-4 i.e.

Supervisor Level) and should be conversant with well control

methods to take independent decisions in case of well emergencies. b. Should be of sound health to work in adverse weather condition in

drilling well.

c. TOUR PUSHER / NIGHT TOOL PUSHER:

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i) Qualification: Graduate in Engineering / Science or three years Diploma in Engineering.

ii) Experience:

a. Should have work experience in deep drilling oil / gas wells, for minimum 7 years, of which at least one year as tool / tour pusher in exploratory & development wells.

b. Should be conversant with working in diesel electrical rigs/supplied rig.

c. Should be conversant with mud chemicals & maintenance of mud

property. d. Should have completed at least one gas well of minimum 4000m

depth e. Should have completed one well in thrust belt area.

iii) Certification / License / Health: a. Must possess valid well control certificate (IWCF Level-4 i.e.

Supervisor Level) and should be conversant with well control methods to take independent decisions in case of well emergencies.

b. Should be of sound health to work in adverse weather condition in

drilling well. d. DRILLER:

i) Qualification: Graduate in Science or three years Diploma in Engineering.

ii) Experience:

a. Should have work experience in deep drilling oil / gas wells, for

minimum 5 years, of which at least one year as Shift in charge / Driller of exploratory & development wells.

b. Should be conversant with working in diesel electrical rigs/supplied

rig. c. Should be conversant with mud chemicals & maintenance of mud

property. d. Should have completed at least one gas well of minimum 4000m

depth

e. Should have completed one well in thrust belt area.

iii) Certification / License / Health:

a. Must possess valid well control certificate (IWCF Level-3 i.e. Drillers Level) and should be conversant with well control methods to detect

well kick, shut the well and assist Tool Pusher / Tour Pusher in case of well emergencies.

b. Should be of sound health to work in adverse weather condition in

drilling well.

e. ASSISTANT DRILLER:

i) Qualification: SSC / HS / PU / I.Sc or equivalent.

ii) Experience:

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a. Should have work experience in deep drilling oil / gas wells, for minimum 4 years, of which at least one year as Asst. Driller / Head-

man of exploratory & development wells. b. Should be conversant with working in diesel electrical rigs/supplied

rig. c. Should be conversant with mud chemicals & maintenance of mud

property.

d. Should have completed at least one gas well of minimum 4000m depth

iii) Certification / License / Health: a. Must possess valid well control certificate (IWCF Level-3 i.e. Drillers

Level) and should be conversant with well control methods to detect well kick, shut the well and assist Tool Pusher / Tour Pusher in case of well emergencies.

b. Should be of sound health to work in adverse weather condition in drilling well.

f. DERRICKMAN / TOPMAN:

i) Qualification: Minimum 8th standard (class-VIII) passed.

ii) Experience: Should have work experience of minimum 1 year as

Derrick man / Top man in a drilling rig.

g. ROUGHNECK / FLOOR-MAN:

i) Qualification: Minimum 8th standard (class-VIII) passed.

ii) Experience: Should have work experience of minimum 1 year as

Roughneck / Floor man / Rig man in a drilling rig. h. CHIEF MECHANIC:

i) Should have a minimum of 3 years’ work experience as Master

mechanic in drilling rigs.

ii) Should have sufficient knowledge of operation and maintenance of

Drilling rigs and its components viz. engines, rig pumps, supercharge

pumps, centrifugal pumps, solid control equipment, degasser, shale

shaker and all other mechanical items/engines operating in drilling

rigs.

iii) Qualification: Diploma in Mechanical/Chemical B.Sc. or equivalent

with 3 years of experience or SSC/HS/PU/I. SC or equivalent with 6

years of experience, of which at least one year should be as Chief

Mechanic in Drilling rigs.

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i. CHIEF ELECTRICIAN:

i) Should have a Degree in Electrical Engineering with a minimum of

3(three) years’ experience or Diploma in Electrical Engineering with a

minimum of 5 yrs. experience as an Electrician in Diesel Electric (AC-

SCR / AC-VFD) drilling rigs.

ii) Should be confident in independently carrying out the fault finding

analysis, rectification of fault, operation and maintenance of all the

electrical items of diesel electric drilling rig including air conditioners.

iii) Must possess valid Electrical Supervisor’s Certificate of Competency

No 1, 2, 3, 4 & 8 (Mining Part) issued by State Licensing Board and

should be conversant with Oil Mines Regulations and Electricity rules.

iv) Validity of permits – All persons working on electrical systems under

this contract should have valid supervisor / workmen permits,

allowing them to work in the state / region where they are deployed.

Responsibility for ensuring adherence to these norms rests with the

contractor.

ITI certificate holders are not acceptable as Chief Electricians.

Moreover, the Chief Electrician must be conversant with the offered AC-

SCR or AC-VFD system of drilling rigs.

j. MECHANIC (IC) / (PUMP)

i) Should have a minimum working experience as Master mechanic in

drilling rig.

ii) Should have sufficient knowledge of operation and maintenance of

Drilling/work-over rigs and its components viz. engines, rig pumps

supercharge pumps, centrifugal pumps, solid control equipment,

degasser, shale shaker and all other mechanical items/engines

operating in drilling rigs.

iii) Qualification: Diploma in Mechanical/Chemical, B.Sc or equivalent

with 3 years’ experience or SSC/HS/PU/I.Sc or equivalent with 6

years’ experience. Out of which at least one year as Mechanic in

Drilling rig.

k. ELECTRICIAN:

i) Must be diploma with minimum 3 yrs. Experience or ITI in Electrical

discipline with minimum 8 yrs. Experience respectively in the

operation and maintenance of diesel electric drilling rig independently

in shifts.

ii) Should be able to read circuits, communicate, detect and rectify faults.

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iii) Must possess valid Electrical Work Permit 1 & 2 Certificate of

competency issued by State Licensing Board.

l. WELDER:

i) Should have at least one year of experience in oil industry and must

be conversant in welding / cutting of casing and well head accessories.

ii) Must possess the valid certificate of welding trade from any recognized

institute of State Govt. (One year course).

m. SUPERVISOR FOR EFFLUENT TREATMENT PLANT

Should be of sound health and have at least two years’ work experience

in E&P Company. He shall have minimum qualification - degree of

B.Sc. in Chemistry / Environmental science from Government

recognized University and shall be conversant to all the SPCB, CPCB,

DGMS, OISD & MoEF guidelines.

n. LABORATORY ASSISTANT FOR ETP

Should be of sound health and have at least two(2) years work

experience in E&P Company. He shall have minimum qualification of

SSLC/ Higher Secondary/ Twelfth Pass or equivalent from recognized

University/ Board in science stream and shall be conversant to all the

SPCB/ CPCB guidelines.

o. HSE Officer:

i) Should be of sound health and have work experience in an E & P

Company of about 1 year.

ii) Duties and responsibilities include safety (including pollution control)

during drilling site preparation, rig up, rig down & rig move, raising &

lowering mast, rig floor operations like making & lowering of BHA,

cementing jobs, tripping in / out of tubular, safety meeting during

crew change, pre job safety meetings, routine inspection ETP, rig and

well site, preparation of job specific SOP in local language, Bridging

document, ERP (Emergency Response Plan), Risk Register,

preparation of Job Safety analysis, Permit to Work systems,

investigation & analysis of accidents, incidents & near miss. Any other

duties related to HSE management in rig site and camp site.

ii) Shall follow all the conditions of EC (Environmental Clearance) and all

DGMS, OISD & MoEF guidelines and submit return at specified

intervals.

iii) Shall be responsible for designing ‘Safe Briefing Area’ and advising all

personnel of the ’current’ safe briefing area.

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iv) Shall be responsible for issuing safety equipment to all personnel

arriving at rig and ascertain that all personnel use and maintain these

equipment properly.

v) Shall be responsible for designing location entrance and exit.

vi) Qualification and Experience: Should be a graduate in Engineering

/ Science / Environment or Diploma in Engineering/ Environment

and have work experience in E&P Company for at least one (1) year.

Health, safety & Environment experiences included formation and

implementation of HSE policies, Work site inspection & hazard

identification, Permit to Work system, pre job safety meeting, Accident,

Incident and Near Miss Investigation & analysis, Report making and

record keeping, selection of PPEs suitable for work activity & work

environment, work site inspection and audits, Emergency Response

Planning & loss control programs, taking precaution for pollution

control and environmental management. Should have knowledge on

ISO, ISRS etc. On top of the experience of the personnel as listed above,

they all should be conversant with BOP drill / Fire Drill as per

standard oilfield practice.

p. MEDICAL / DOCTOR

i) Qualification: Must be minimum MBBS degree holder & registered

medical practitioner.

ii) Experience: Shall have a minimum work experience of 2 years in any

hospital / rig site drilling camp.

q. HEAVY CRANE OPERATOR:

i) Should have a minimum of 2 years work experience in operating a

heavy crane attached to drilling rigs and should possess valid license for

driving heavy motor vehicle.

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